factual

Does the Craters & Freighters Franchise Agreement define what constitutes a 'curable default'?

Craters_Freighters Franchise · 2025 FDD

Answer from 2025 FDD Document

Item Provision Section in Franchise Agreement Summary
g. "Cause" defined – curable defaults Section 19.2 Curable Defaults: You have 30 days to cure
any of the following defaults: non-payment of
any amount due and owing to us or any
Affiliate of ours as required by us pursuant to
the Franchise Agreement, Operations Manuals,
or otherwise; failure or refusal to submit, when
due, any report or other data, information, or
supporting records relating to the Franchised
Business; failure or refusal to accurately report
the Adjusted Gross Sales of the Franchised
Business; failure or refusal to operate a
warehouse within the Premises necessary for
the operation of the Franchised Business;
uncured default under the Lease for the
Premises; offer or sale of any products or
services not authorized by us; failure or refusal
to comply with the Operations Manuals or,
more specifically, any of the System Standards;
failure or refusal to pay any taxes due in
connection with your operation of the
Franchised Business; failure or refusal to
obtain and/or maintain all applicable licenses
and permits relating to the operation of the
Franchised Business; failure or refusal to
obtain our written approval or consent when
required; or failure or refusal to comply with
any other provision of the Franchise
Agreement, Operations Manuals, or any
System Standard.

h. "Cause" defined – non-curable Section 19.1 Non-Curable Defaults: failure or refusal to defaults open the Franchised Business within 90 days after execution of the Franchise Agreement; the making of any material misrepresentation or omission in applying to be a Craters & Freighters franchisee; you or any other required attendee(s) fail to attend and complete, to our satisfaction, the initial training program;

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTIONS (FDD pages 36–44)

What This Means (2025 FDD)

According to the 2025 Craters & Freighters Franchise Disclosure Document, the agreement does define what constitutes a 'curable default'. Specifically, Section 19.2 of the Franchise Agreement outlines several defaults that Craters & Freighters franchisees have 30 days to cure.

The curable defaults include non-payment of amounts owed to Craters & Freighters or its affiliates, failure to submit reports or data, inaccurate reporting of Adjusted Gross Sales, failure to operate a necessary warehouse, uncured default under the premises lease, unauthorized sale of products or services, failure to comply with Operations Manuals or System Standards, failure to pay taxes, failure to maintain required licenses and permits, failure to obtain required written approval, and failure to comply with any other provision of the Franchise Agreement, Operations Manuals, or System Standards.

This means that if a Craters & Freighters franchisee commits any of these curable defaults, they will have a 30-day period to rectify the situation and avoid termination of their franchise agreement. It is important for prospective franchisees to understand these conditions and ensure they can meet these obligations to maintain their franchise in good standing.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.
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